New Jersey Section 2C:21-24 – Definitions

Understanding New Jersey Section 2C:21-24 – Definitions

New Jersey Section 2C:21-24 is part of the state’s criminal code that provides definitions for key terms used in laws related to forgery and money laundering offenses. This section helps clarify the meaning and scope of these crimes.

Overview of Section 2C:21-24

Section 2C:21-24 falls under Chapter 21 of Title 2C, which covers forgery and related offenses in New Jersey[1]. The specific definitions under 2C:21-24 apply to laws prohibiting money laundering and illegal investments under 2C:21-25 and subsequent sections[2].

Some key terms defined under 2C:21-24 include[3]:

• Property: Anything of value, including money, real estate, vehicles, etc. This aligns with the definition under the general theft statute 2C:20-1.
• Proceeds: Any property derived directly or indirectly from, maintained by, or realized through an act. This connects to the concept of profits from illegal activity.
• Financial institution: Banks, insurance companies, brokerages, and other entities regulated by state or federal law.
• Transaction: A purchase, sale, loan, pledge, gift, transfer, delivery, or other disposition of property.

Money Laundering Offense

The main criminal offense covered by 2C:21-24 definitions is money laundering under [2C:21-25]. This law makes it illegal to engage in a transaction involving property known to be criminal proceeds. The purpose is to conceal the source, ownership, control, or location of those proceeds.

For example, depositing cash from drug sales into a bank account to hide where the money came from would violate 2C:21-25. The definitions in 2C:21-24 help clarify key aspects of this crime.

Penalties and Degrees

Money laundering under 2C:21-25 is categorized into different degrees based on the amount of proceeds involved [2C:21-27]:

• 3rd Degree Crime: Less than $75,000
• 2nd Degree Crime: At least $75,000 but less than $500,000
• 1st Degree Crime: $500,000 or more

1st degree money laundering can result in 10-20 years imprisonment and a fine up to $200,000 [2C:43-6]. Lower degrees have less severe penalties.

Investigative Interrogatives

Prosecutors have special powers under [2C:21-29] to conduct “investigative interrogatives” related to suspected money laundering. This allows questioning witnesses under oath without a court order.

Federal Money Laundering Laws

It’s important to note New Jersey’s state definitions and prohibitions exist alongside federal money laundering laws. Transactions crossing state borders or involving federal institutions may fall under federal jurisdiction.

Federal and state prosecutors often collaborate on complex financial crime cases. The New Jersey Money Laundering Statute was designed to align closely with federal law.

Policy Considerations

Critics of money laundering laws argue the complex web of regulations places undue burdens on the financial industry. This increases costs for consumers and reduces access to banking services for marginalized groups[5].

However, proponents contend these laws are necessary to detect and deter organized crime. Money laundering facilitates drug trafficking, terrorism, tax evasion, and other dangerous enterprises.

Policymakers continually debate how to balance competing priorities of privacy, access, security, and criminal justice when regulating financial systems.

Defense Strategies

Defendants in money laundering cases may argue they did not actually “know” the funds involved were criminal proceeds, since the mental state requirement is key. Claiming ignorance of the underlying activity may be an effective defense.

Defendants can also argue they did not intend to conceal illegal sources or ownership of funds. Merely spending or investing profits alone does not always constitute “laundering.”

Cooperating with authorities and preventing further illicit transactions after being notified funds are suspect may also help mitigate penalties.

Conclusion

The definitions under New Jersey Section 2C:21-24 provide the foundation for understanding criminal prohibitions against money laundering and related financial crimes. These laws serve an important public purpose, but also impact a wide range of industries and individuals.

Navigating this complex legal landscape requires a thorough knowledge of the specific terms and provisions defined under statutes like 2C:21-24. Legal practitioners and financial professionals must stay up to date on the latest regulations and defense strategies.

With diligence and care, legitimate institutions can comply with anti-money laundering rules without undue burden. And by working cooperatively, law enforcement and regulators can target bad actors without overreaching. Achieving this balance remains an ongoing challenge.